If I have a account say with scottrade and in it I have a total of 20k in it .
The next day I Short Sell a stock at say $10 @ 1000 shares total of 10 k then that same day say 2 hours later rebuy the stock at 9 @ 1000 making me 1k .. My question is do I have to pay interest on the use of the stock even though I funded it with my money and if I do what determines the rate I have to pay?
Posted by keithsan on :
no
Posted by Machiavelli on :
there is not "interest payment" in stock trading... with the exception of a money market account in which you can elect to put your money when not trading.. but to answer your question because Master Keith didnt clarify... no you do not pay interest in short selling or any sort of buying and selling...
Posted by heftybc on :
when people are talking about a stock OS what is this refering to ?
Posted by Purl Gurl on :
"when people are talking about a stock OS what is this refering to?"
Outstanding Shares. That is the number of shares out in public hands. OS is not a reflection of the number of "authorized" shares which can be sold to public buyers. Total amount authorized shares is usually much greater than outstanding shares. Not always, but is so most often.
A large ratio of authorized shares to outstanding shares is a warning signal. An example would be a company has one-billion authorized shares and two-hundred-million outstanding shares, there is an increased risk of dilution.
Penny stock companies with over five-hundred-million outstanding shares are of higher risk. Companies with a billion or more outstanding shares, those are companies you want to avoid.
A lower number of outstanding shares leads to greater volatility, if sufficient volume, which lends well to swing trade profits.
Pay attention when a company has sold all of its authorized shares. This increases chances of more authorized shares being registered and sold which can lead to dilution.
Posted by heftybc on :
thanks purl gurl that was very informative. I really do appreciate the information.
cheers
Posted by heftybc on :
another question I have is what is the best trading service to use when trading in penny stocks. Right now I'm using waterhouse, they are very good but the trading fee is far to high. The min fee is $29
I would like to find something much cheaper to make it viable in making 500 dollar trades
Posted by Pagan on :
Choicetrade= $5 a trade Scottrade = $7 a trade (+ .05% of principal for pennies) Ameritrade = $10 a trade
Those are 3 of the most commonly used amongst penny traders
Posted by Machiavelli on :
Scottrade sux and Ameritrade is overpriced for the same service... go with Choicetrade...